Rep. Foster Announces "Donut Hole' Relief, Warns Seniors of Potential Scams

Press Release

Medicare to Begin Mailing $250 Checks to Seniors Who Fall Into Medicare Part D Coverage Gap.

Rep. Bill Foster (IL-14) announced that today, Medicare will start mailing out $250 checks to seniors affected by the Medicare Part D donut hole.

"When I listen to seniors back in my district, I hear how prescription drug prices are draining away their life savings and are threatening their well-being -- and the donut hole is a big part of that," said Foster. "This check will be the first step to help defray some of the costs caused by the donut hole."

The "donut hole," which was created as a result of the 2003 Medicare reform law, is a coverage gap that occurs when seniors with drug costs that exceed $2,830 annually are stuck paying 100 percent of their drug costs until they reach the catastrophic drug cost threshold. In Illinois alone, approximately 151,000 seniors fell into the donut hole in 2009.

Under the health insurance reform law, seniors who fall into the Medicare Part D prescription donut hole coverage gap in 2010 will receive a one-time, tax-free $250 check. The checks will be mailed automatically as soon as seniors enter the coverage gap.

In the months ahead, additional steps will be taken to reduce and eventually eliminate the donut hole. Beginning in January of 2011, seniors in the donut hole will receive a 50 percent discount on name-brand prescription drugs, and by 2020, the donut hole will be completely closed.

Medicare recipients don't have to do anything to get the check--once their drug costs for the year hit $2,830, the checks will be issued automatically. But Foster warned seniors to be on the lookout for fraud.

"It is important that seniors understand that they do not need to do anything or provide their personal information to anyone in order to get these checks -- if residents receive phone calls demanding personal information in exchange for the donut hole payment, they should hang up and call the Illinois Attorney General's office immediately to report the incident," said Foster.

The Illinois Attorney General's office can be reached at 1-800-386-5438. Foster also warned seniors of fraud last year, when he discovered a deceptive mailing that was being sent to seniors in his district. The mailing was designed to make the recipients believe it was sent from the U.S. Census Bureau, but it was actually a misleading scheme intended to trick seniors into providing their credit card information.

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